WPI inflation at 1.1% rekindles rate cut expectation

NEW DELHI: Wholesale price based

inflation

was unchanged at 1.1% in August, reinforcing the

expectation

of a

rate

cut by the RBI in the October policy review.


Although the RBI takes into account the consumer price index based inflation while deciding its

monetary policy

stance, the decline in

core inflation

has strengthened the case for a rate cut, said an expert. Inflation in food articles rose to 7.7% during the month as against 6.2% in July.